Essay Analysis of U.K Supermarket Development Strategy

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Part one: Supermarket retail industry introduction

Effective strategy is developed first by identifying and understanding the implications of the changing events in the business environment. Many of the events occurring currently have a wide international impact, and they may be seen to be influencing the results and responses of large supermarket retailers. The changes, or issues, that we see as important from a strategic planning perspective are:
 The growth of global companies
 Changing customer characteristics
 Innovation, format changes
 Customer loyalty
 People
 The impact of information sciences and technology(David Walters & Jack Hanrahan 2002)

1. The growth of global
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For example, Wal-Mart is the leading retailer in the US, Canada and Mexico. So in these areas, the market objective is holding the exist market and beat back the rivals. But in China, there are large development and profit room for Wal-Mart. So, the market objective is building the market quickly.
In UK market, Tesco is extraordinary stronger than other companies as the below charts show. So if ASDA (Wal-Mart) wants to survive even gain more profit, it should put itself in a challenger position with Tesco which means put the build objective in the first place. It also means the business strategy of ASDA (Wal-Mart) should focuses on business growth and winning market share from Tesco and other strong companies, such as Sainsbury¡¯s and Morrison. But for Tesco, its main mission is holding its market share and making sense of the competitors¡¯ action.

B. Marketing Analysis

It is critical and essential to set some marketing policies and methods supporting the implementation of the strategy. So, next, we will move to the analysis of marketing policies and methods adopted by ASDA (Wal-Mart)
For the sake of clear and comprehensive consideration, we will use the model of positioning for services to explore the marketing world of ASDA (Wal-Mart).

Positioning for services model (David Jobber 2004)
Target Customer Needs Services Marketing Mix
1. Target marketing
The basis of target marketing concerns

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